Wiley Reports Second Quarter 2018 Results

Public Company Information:

"cash flow from operating activities, less book composition and other product development and capital spending."

HOBOKEN, N.J.--(BUSINESS WIRE)--John Wiley and Sons Inc. (NYSE:JWA)(NYSE:JWB), a global research and
learning company, today announced results for the second quarter ending
October 31, 2017.

HIGHLIGHTS

Revenue increased 6% to $452 million; +3% at constant currency

Adjusted EPS increased 32% to $1.03; +22% at constant currency. EPS on
a GAAP basis at $1.04, up from ($0.20)

Free Cash Flow less Product Development Spending for six months
improved by $38 million

Brian A. Napack named as President and CEO

FINANCIAL SUMMARY

Unaudited ($millions except for EPS)

GAAP Measures

Q2 2018

Q2 2017

Change

Change

Constant Currency

Revenue

$451.7

$425.6

6%

3%

Operating Income

$82.8

$47.6

74%

Diluted EPS

$1.04

($0.20)

+$1.24

Non-GAAP Measures

Q2 2018

Q2 2017

Change

Change

Constant Currency

Adjusted Operating Income

$81.4

$63.3

16%

Adjusted EPS

$1.03

$0.78

22%

Revenue increase was largely driven by growth in Research
Journals (+3%), STM and Professional Publishing (+4%), and Education
Services/Online Program Management (+6%), as well as growth from the
Atypon acquisition (+$6 million).

Adjusted Operating Income growth was mainly due to higher
revenue and lower technology expenses, including ERP implementation
costs. Adjusted Contribution to Profit (CTP) for Research, Publishing,
and Solutions rose for all three segments. GAAP Operating Income
increased 74% to $82.8 million, which also reflected the timing of
restructuring charges and credits, as well as a settlement charge
related to a pension distribution for terminated employees in the
prior year.

Adjusted EPS increase was due to higher operating income and
lower interest expense. GAAP EPS growth (+$1.24) also reflected
unfavorable items in the prior year, including an income tax
settlement in Germany (-$0.83) and the pension settlement charge
(-$0.10).

Return to Shareholders: During the quarter, Wiley repurchased
285,599 shares for $15.2 million at an average cost of $53.37.
Approximately 3.2 million shares remain in the repurchase program.

MANAGEMENT COMMENTARY

“The second quarter was highlighted by the announcement of Brian Napack
as our new President and CEO and Ella Balagula as our new EVP of
Publishing. We also realized improved growth in Research, better than
expected results in Publishing, and significant progress in our
operational excellence initiatives,” said Matthew Kissner, Chairman.
“This month, we celebrate 210 years of enabling many of the world’s
advances in research and learning. While we are immensely proud of our
legacy, we are just as energized by the opportunities ahead of us.”

FISCAL YEAR 2018 OUTLOOK

The Company reaffirms its fiscal 2018 guidance.

Metric ($M)

FY17 Actual

FY18 Expectation

(at constant currency)

Revenue

$1,718.5

Approximately even

Adjusted Operating Income

$228.4

Approximately even

Adjusted EPS

$3.01

Low-single digit % decline

Cash from Operations

$314.5

$350 million or higher

Capex

$148.3

Slightly lower

Adjusted Results: The Company provides financial measures
referred to as “adjusted,” whichexclude unusual charges and
credits as more fully described in the attached financial schedules. For
the three and six month periods ended October 31, 2017, the Company
excluded foreign exchange gains and losses on intercompany transactions
in deriving adjusted earnings in the current and prior year periods.
This change will also be reflected in subsequent periods. The Company
believes these gains and losses, which result from transactions
associated with tax planning efforts, do not reflect its underlying
performance.

Foreign Exchange: Foreign exchange was beneficial to second
quarter revenue and EPS by $14.5 million and $0.08, respectively, and
first half revenue and EPS by $17.3 million and $0.15.If
current rates were to hold through year-end, Wiley would record positive
FX variances in the fiscal year of approximately $45 million in revenue,
$25 million in operating income, and $0.35 in EPS due to changes in
exchange rates and functional currency gains related to calendar year
2017 journal subscriptions in the UK.

Note: variances in this release are on a constant currency basis unless
otherwise noted.

RESEARCH SEGMENT

Revenue: $228.9 million (+11% GAAP; +5% constant currency). The
increase was driven primarily by the contribution from the Atypon
acquisition (+$6 million), strong Open Access growth (+25%), and
higher Licensing, Reprints, Backfile and Other revenue (+11%).

Society Publishing Partnerships: Two new society contracts were
signed in the quarter with combined annual revenue of $3.0 million and
ten were renewed with combined annual revenue of $6.6 million. None
were lost.

Wiley Digital Archives: In October, Wiley launched a new
program to enable institutional customers to purchase digital access
to unique or rare historical primary sources, digitized from partner
societies, libraries, and archives around the world.

PUBLISHING SEGMENT

Revenue: $165.0 million (+1% GAAP; flat constant currency).
Better than expected performance was driven by STM, Professional, and
Educational Publishing (+2%) and growth in Test Preparation and
Certification (+5%) and Licensing, Distribution, Advertising, and
Other (+11%). Course Workflow (WileyPLUS) was down 18% in the quarter
due to the timing of revenue recognition. Operationally, WileyPLUS
sales (net of actual returns) rose 8% for the quarter and 4% for the
six months. The timing differences for revenue recognition reflect
longer sales amortization for subscription periods extending across
two semesters.

Adjusted Contribution to Profit: $42.5 million (+14% constant
currency). Improved performance was primarily due to savings from
operational excellence initiatives. GAAP Contribution to Profit of
$42.5 million (+16%) also reflected impacts from foreign exchange and
the timing of restructuring charges and credits.

New Leadership: In October, Wiley announced Ella Balagula as
the new Executive Vice President of Wiley’s Publishing segment. Prior
to joining, Ms. Balagula was Senior Vice President and General Manager
of Engineering Solutions at Elsevier, where she was responsible for
commercial go-to-market, product management, software development and
content acquisition and production in the engineering and academic
segments.

Partnership: In November, Wiley and Kortext, a digital textbook
and personal study platform, announced a partnership with the Egyptian
Knowledge Bank (EKB) to provide digital textbooks to every Egyptian
citizen and all universities, empowering their students to learn
anytime, anywhere.

SOLUTIONS SEGMENT

Revenue: $57.9 million (+3% GAAP and +2% constant currency).
Growth in Education Services/Online Program Management (+6%) more than
offset a 4% decline in Corporate Learning (CrossKnowledge), where
French government funding slowed for unemployment initiatives and
blended learning programs, and a 2% decline in Professional
Assessment, where our pre-hire assessment business has been shifting
from enterprise direct sales to higher margin partner channels.

Adjusted Contribution to Profit: Increased 14% to $6.7 million.
Improvement driven by higher revenue and increased operating
efficiency. GAAP Contribution to Profit of $7.3 million (+36%)
also reflected impacts from foreign exchange and the timing of
restructuring charges and credits.

Education Services (OPM): Wiley signed four new programs and
discontinued one this quarter. As of October 31, Wiley had 39
university partners and 254 programs under contract.

SIX MONTH RESULTS

Unaudited ($millions except for EPS)

GAAP Measures

1H 2018

1H 2017

Change

Change

Constant Currency

Revenue

$863.2

$829.9

4%

2%

Operating Income

$97.3

$91.6

6%

Diluted EPS

$1.20

$0.34

+$0.86

Cash Flow Used For Operations

($46.3)

($86.1)

46%

Non-GAAP Measures

1H 2018

1H 2017

Change

Change

Constant Currency

Adjusted Operating Income

$125.2

$106.3

5%

Adjusted EPS

$1.62

$1.31

12%

Free Cash Flow less Product Development Spending

(117.8)

($155.4)

24%

Revenue growth for the first six months driven primarily by
Research Journals (+2%), Education Services/Online Program Management
(+10%), and Test Preparation and Certification (+14%), as well as
growth from the Atypon acquisition (+$14 million GAAP). Research and
Solutions revenue growth more than offset a 4% decline in Publishing
revenue.

Adjusted Operating Income growth for the first half was mainly
due to the increase in revenue, which was partially offset by $6
million of one-time credits related to employee benefit plans in the
prior year. GAAP Operating Income was up 6% to $97.3 million as
higher restructuring charges were more than offset by the pension
settlement charge in the prior year and the favourable impact of
foreign exchange in the current year.

Adjusted EPS growth in the first six months was due to higher
operating income and lower interest expense. GAAP EPS growth
(+$0.86) also reflected restructuring charges in both periods and an
income tax settlement in Germany (-$0.82) in the prior year.

Free Cash Flow less Product Development Spending improvement
was mainly due to the timing of cash collections and payments as
anticipated in the fourth quarter 2017 report. Free cash flow is
seasonally negative in the first half of Wiley’s fiscal year
principally due to the timing of collections for journal subscriptions.

Wiley, a global research and learning company, helps people and
organizations develop the skills and knowledge they need to succeed. Our
online scientific, technical, medical, and scholarly journals, combined
with our digital learning, assessment and certification solutions help
universities, academic societies, businesses, governments and
individuals increase the academic and professional impact of their work.
For more than 200 years, we have delivered consistent performance to our
stakeholders. The company's website can be accessed at www.wiley.com.

FORWARD-LOOKING STATEMENTS

This release contains certain forward-looking statements concerning the
Company's operations, performance, and financial condition. Reliance
should not be placed on forward-looking statements, as actual results
may differ materially from those in any forward-looking statements. Any
such forward-looking statements are based upon a number of assumptions
and estimates that are inherently subject to uncertainties and
contingencies, many of which are beyond the control of the Company, and
are subject to change based on many important factors. Such factors
include, but are not limited to (i) the level of investment in new
technologies and products; (ii) subscriber renewal rates for the
Company's journals; (iii) the financial stability and liquidity of
journal subscription agents; (iv) the consolidation of book wholesalers
and retail accounts; (v) the market position and financial stability of
key online retailers; (vi) the seasonal nature of the Company's
educational business and the impact of the used book market; (vii)
worldwide economic and political conditions; (viii) the Company's
ability to protect its copyrights and other intellectual property
worldwide (ix) the ability of the Company to successfully integrate
acquired operations and realize expected opportunities and (x) other
factors detailed from time to time in the Company's filings with the
Securities and Exchange Commission. The Company undertakes no obligation
to update or revise any such forward-looking statements to reflect
subsequent events or circumstances.

JOHN WILEY & SONS, INC.

UNAUDITED SUMMARY OF OPERATIONS

FOR THE SECOND QUARTER AND SIX MONTHS ENDED

OCTOBER 31, 2017 AND 2016

(in thousands, except per share amounts)

SECOND QUARTER ENDED OCTOBER 31,

2017

2016

% Change

US GAAP

Adjustments (A)

Adjusted

US GAAP

Adjustments (A)

Adjusted

US GAAP

Adjusted excl. FX

Revenue

$

451,731

-

451,731

425,588

-

425,588

6

%

3

%

Costs and Expenses

Cost of Sales

119,865

-

119,865

111,574

-

111,574

7

%

4

%

Operating and Administrative

239,318

-

239,318

247,270

(8,842

)

238,428

-3

%

-1

%

Restructuring and Related (Credits) Charges

(1,406

)

1,406

-

6,847

(6,847

)

-

NM

0

%

Amortization of Intangibles

11,183

-

11,183

12,253

-

12,253

-9

%

-10

%

Total Costs and Expenses

368,960

1,406

370,366

377,944

(15,689

)

362,255

-2

%

0

%

Operating Income

82,771

(1,406

)

81,365

47,644

15,689

63,333

74

%

16

%

Operating Margin

18.3

%

18.0

%

11.2

%

14.9

%

Interest Expense

(3,455

)

-

(3,455

)

(4,360

)

-

(4,360

)

-21

%

-21

%

Foreign Exchange (Losses) Gains

(416

)

287

(129

)

(360

)

1,899

1,539

16

%

NM

Interest Income and Other

576

-

576

478

-

478

21

%

21

%

Income Before Taxes

79,476

(1,119

)

78,357

43,402

17,588

60,990

83

%

19

%

Provision (Benefit) for Income Taxes

19,428

(391

)

19,037

54,853

(38,957

)

15,896

-65

%

12

%

Net Income

$

60,048

(728

)

59,320

(11,451

)

56,545

45,094

NM

21

%

Earnings Per Share- Diluted

$

1.04

(0.01

)

1.03

(0.20

)

0.98

0.78

NM

22

%

Average Shares - Diluted

57,554

57,554

57,554

57,538

57,538

57,538

SIX MONTHS ENDED OCTOBER 31,

2017

2016

% Change

US GAAP

Adjustments (A)

Adjusted

US GAAP

Adjustments (A)

Adjusted

US GAAP

Adjusted excl. FX

Revenue

$

863,175

-

863,175

829,873

-

829,873

4

%

2

%

Costs and Expenses

Cost of Sales

234,653

-

234,653

225,052

-

225,052

4

%

3

%

Operating and Administrative

483,126

(3,600

)

479,526

482,497

(8,842

)

473,655

0

%

1

%

Restructuring and Related Charges (Credits)

24,323

(24,323

)

-

5,927

(5,927

)

-

NM

0

%

Amortization of Intangibles

23,802

-

23,802

24,826

-

24,826

-4

%

-4

%

Total Costs and Expenses

765,904

(27,923

)

737,981

738,302

(14,769

)

723,533

4

%

2

%

Operating Income

97,271

27,923

125,194

91,571

14,769

106,340

6

%

5

%

Operating Margin

11.3

%

14.5

%

11.0

%

12.8

%

Interest Expense

(6,728

)

-

(6,728

)

(8,431

)

-

(8,431

)

-20

%

-20

%

Foreign Exchange (Losses) Gains

(5,552

)

6,304

752

(139

)

3,228

3,089

NM

NM

Interest Income and Other

581

-

581

728

-

728

-20

%

-20

%

Income Before Taxes

85,572

34,227

119,799

83,729

17,997

101,726

2

%

6

%

Provision (Benefit) for Income Taxes

16,288

10,236

26,524

64,180

(39,021

)

25,159

-75

%

-5

%

Net Income

$

69,284

23,991

93,275

19,549

57,018

76,567

NM

10

%

Earnings Per Share- Diluted

$

1.20

0.42

1.62

0.34

0.98

1.31

NM

12

%

Average Shares - Diluted

57,633

57,633

57,633

58,259

58,259

58,259

(A) See the accompanying Notes to Unaudited Financial Statements
for a description of each Adjustment.

NM- Not Meaningful

JOHN WILEY & SONS, INC.

FOR THE SECOND QUARTER AND SIX MONTHS ENDED

OCTOBER 31, 2017 AND 2016

RECONCILIATION OF US GAAP TO ADJUSTED EPS
- DILUTED (UNAUDITED)

Second Quarter Ended

Six Months Ended

October 31,

October 31,

2017

2016

2017

2016

US GAAP Earnings Per Share - Diluted

$

1.04

$

(0.20

)

$

1.20

$

0.34

Adjusted to exclude the following:

Restructuring and Related (Credits) Charges (A)

(0.02

)

0.08

0.33

0.07

Foreign Exchange Losses on Intercompany Transactions (B)

0.01

0.01

0.09

0.04

One-time - Pension Settlement (C)

-

0.10

-

0.09

Unfavorable Tax Settlement (D)

-

0.83

-

0.82

Deferred Income Tax Benefit on UK Rate Change (E)

-

(0.04

)

-

(0.04

)

Adjusted Earnings Per Share - Diluted (F)

$

1.03

$

0.78

$

1.62

$

1.31

NOTES TO UNAUDITED FINANCIAL STATEMENTS

Adjustments:

(A)

Adjusted results exclude restructuring (credits) charges and
related items associated with the Company's Restructuring and
Reinvestment Program. For the three months ended October 31, 2017
and 2016, there were credits of $1.4 million or $(0.02) per share
and charges of $6.8 million or $0.08 per share, respectively. For
the six months ended October 31, 2017 and 2016, there were charges
of $27.9 million or $0.33 per share, and charges of $5.9 million or
$0.07 per share, respectively.

(B)

In 2017, we adjusted results to exclude foreign exchange losses
associated with intercompany transactions. The prior year adjusted
earnings per share amounts have been recasted to conform to current
year presentation. For the three months ended October 31, 2017 and
2016, there were gains of $0.3 million or $0.01 per share and gains
of $1.9 million or $0.01 per share, respectively. For the six months
ended October 31, 2017 and 2016, there were gains of $6.3 million or
$0.09 per share, and gains of $3.2 million or $0.04 per share,
respectively.

(C)

As previously disclosed and as reported in the Company's SEC
filings, the Company announced a voluntary, limited-time opportunity
for terminated vested employees who were participants in the U.S.
defined benefit retirement plan to elect a single lump sum payment
of accumulated benefits. The election period closed on August 29,
2016. The total charge including a prorata portion of the
unamortized net actuarial loss was $8.8 million or $0.10 per share
for the quarter and, $0.09 per share for the six month period. The
aggregate amount of payments under this one time election was $28.3
million, which was paid from Pension Plan assets in October 2016.

(D)

As previously disclosed and as reported in the Company's SEC
filings, the Company was appealing an unfavorable tax ruling in
Germany related to tax benefits obtained through an increase in the
tax deductible basis of certain merged German subsidiaries. In
September 2016, the German Federal Fiscal Court issued an
unfavorable final judgement in Wiley's longstanding tax appeal. As a
result in 2016, the Company recorded a $47.5 million charge, $0.83
per share in the quarter, $0.82 per share for the six month period.

(E)

As previously disclosed and as reported in the Company's SEC
filings, the adjusted results for the three and six months ended
October 31, 2016 exclude deferred tax benefits of $2.6 million, or
$0.04 per share, associated with tax legislation enacted in the
second quarter of fiscal year 2017 in the United Kingdom that
reduced the U.K. corporate income tax rates by 1 percentage point in
2020. The benefits reflect the remeasurement of the Company's
deferred tax balances from 18% to the new income tax rate of 17%
effective April 1, 2020 and had no current cash tax impact.

(F)

The Reconciliation of US GAAP to Adjusted EPS - Diluted table may
not foot due to rounding.

Non-GAAP Financial Measures:

In addition to providing financial results in accordance with
GAAP, the Company has provided adjusted financial results that
exclude the impact of other unusual or special items described in
more detail throughout this press release. These non-GAAP financial
measures are labeled as "Adjusted" and are used for evaluating the
results of operations for internal purposes. These non-GAAP measures
are not intended to replace the presentation of financial results in
accordance with GAAP. Rather, the Company believes the exclusion of
such items provides additional information to investors to
facilitate the comparison of past and present operations. Unless
otherwise noted, adjusted amounts in the attached schedules include
the impact of foreign exchange.

JOHN WILEY & SONS, INC.

UNAUDITED SEGMENT RESULTS

FOR THE SECOND QUARTER AND SIX MONTHS ENDED

OCTOBER 31, 2017 AND 2016

(in thousands)

SECOND QUARTER ENDED OCTOBER 31,

2017

2016

% Change

US GAAP

Adjustments (A)

Adjusted

US GAAP

Adjustments (A)

Adjusted

US GAAP

Adjusted excl. FX

Research

Revenue

Journal Subscriptions

$

170,163

-

170,163

159,726

-

159,726

7

%

0

%

Open Access

9,350

-

9,350

7,423

-

7,423

26

%

25

%

Licensing, Reprints, Backfiles and Other

41,329

-

41,329

36,367

-

36,367

14

%

11

%

Total Journal Revenue

220,842

-

220,842

203,516

-

203,516

9

%

3

%

Publishing Technology Services (Atypon)

8,028

-

8,028

2,478

-

2,478

NM

NM

Total Revenue

228,870

-

228,870

205,994

-

205,994

11

%

5

%

Contribution to Profit (A)

71,163

(388

)

70,775

60,292

229

60,521

18

%

4

%

Publishing

Revenue

STM and Professional Publishing

$

71,460

-

71,460

68,130

-

68,130

5

%

4

%

Education Publishing

57,711

-

57,711

57,472

-

57,472

0

%

-1

%

Course Workflow (WileyPLUS)

16,310

-

16,310

19,840

-

19,840

-18

%

-18

%

Test Preparation and Certification

7,919

-

7,919

7,521

-

7,521

5

%

5

%

Licensing, Distribution, Advertising and Other

11,585

-

11,585

10,337

-

10,337

12

%

11

%

Total Revenue

164,985

-

164,985

163,300

-

163,300

1

%

0

%

Contribution to Profit (A)

42,476

71

42,547

36,490

215

36,705

16

%

14

%

Solutions

Revenue

Education Services (OPM)

$

29,737

-

29,737

28,007

-

28,007

6

%

6

%

Professional Assessment

15,821

-

15,821

16,146

-

16,146

-2

%

-2

%

Corporate Learning

12,318

-

12,318

12,141

-

12,141

1

%

-4

%

Total Revenue

57,876

-

57,876

56,294

-

56,294

3

%

2

%

Contribution to Profit (A)

7,309

(625

)

6,684

5,359

524

5,883

36

%

14

%

Corporate Expenses (A)

(38,177

)

(464

)

(38,641

)

(54,497

)

14,721

(39,776

)

-30

%

-4

%

Operating Income

$

82,771

(1,406

)

81,365

47,644

15,689

63,333

74

%

16

%

(A) See the accompanying Notes to Unaudited Financial Statements
for a description of each Adjustment.

NM- Not Meaningful

SIX MONTHS ENDED OCTOBER 31 ,

2017

2016

% Change

US GAAP

Adjustments (A)

Adjusted

US GAAP

Adjustments (A)

Adjusted

US GAAP

Adjusted excl. FX

Research

Revenue

Journal Subscriptions

$

338,488

-

338,488

322,410

-

322,410

5

%

0

%

Open Access

18,153

-

18,153

14,936

-

14,936

22

%

22

%

Licensing, Reprints, Backfiles and Other

79,559

-

79,559

73,394

-

73,394

8

%

9

%

Total Journal Revenue

436,200

-

436,200

410,740

-

410,740

6

%

2

%

Publishing Technology Services (Atypon)

16,297

-

16,297

2,478

-

2,478

NM

NM

Total Revenue

452,497

-

452,497

413,218

-

413,218

10

%

6

%

Contribution to Profit (A)

132,624

4,448

137,072

120,727

160

120,887

10

%

2

%

Publishing

Revenue

STM and Professional Publishing

$

135,060

-

135,060

138,835

-

138,835

-3

%

-3

%

Education Publishing

103,447

-

103,447

112,326

-

112,326

-8

%

-8

%

Course Workflow (WileyPLUS)

17,520

-

17,520

20,706

-

20,706

-15

%

-16

%

Test Preparation and Certification

19,409

-

19,409

17,077

-

17,077

14

%

14

%

Licensing, Distribution, Advertising and Other

20,827

-

20,827

19,317

-

19,317

8

%

8

%

Total Revenue

296,263

-

296,263

308,261

-

308,261

-4

%

-4

%

Contribution to Profit (A)

47,485

10,925

58,410

55,832

569

56,401

-15

%

3

%

Solutions

Revenue

Education Services (OPM)

$

56,074

-

56,074

51,179

-

51,179

10

%

10

%

Professional Assessment

30,708

-

30,708

29,668

-

29,668

4

%

4

%

Corporate Learning

27,633

27,633

27,547

-

27,547

0

%

-2

%

Total Revenue

114,415

-

114,415

108,394

-

108,394

6

%

5

%

Contribution to Profit (A)

5,341

2,170

7,511

5,506

524

6,030

-3

%

24

%

Corporate Expenses (A)

(88,179

)

10,380

(77,799

)

(90,494

)

13,516

(76,978

)

-3

%

1

%

Operating Income

$

97,271

27,923

125,194

91,571

14,769

106,340

6

%

5

%

(A) See the accompanying Notes to Unaudited Financial Statements
for a description of each Adjustment.

NM- Not Meaningful

JOHN WILEY & SONS, INC.

UNAUDITED CONDENSED STATEMENTS OF FINANCIAL POSITION

(in thousands)

October 31,

April 30,

2017

2016

2017

Current Assets

Cash and cash equivalents

$

72,871

$

267,410

$

58,516

Accounts receivable

193,506

212,590

188,679

Inventories

43,540

51,779

47,852

Prepaid and other

54,092

147,753

64,688

Total Current Assets

364,009

679,532

359,735

Product Development Assets

68,124

38,574

70,955

Royalty Advances

12,500

10,353

28,320

Technology, Property and Equipment

274,624

248,281

252,488

Intangible Assets

828,524

822,962

828,099

Goodwill

999,546

974,068

982,101

Other Assets

85,503

79,684

84,519

Total Assets

$

2,632,830

$

2,853,454

$

2,606,217

Current Liabilities

Accounts and royalties payable

$

150,888

$

158,985

$

139,206

Deferred revenue

244,328

223,307

436,235

Accrued employment costs

79,827

69,072

98,185

Accrued income taxes

17,711

8,515

22,222

Accrued pension liability

5,826

5,459

5,776

Other accrued liabilities

83,615

77,484

86,232

Total Current Liabilities

582,195

542,822

787,856

Long-Term Debt

562,962

883,992

365,000

Accrued Pension Liability

208,382

181,735

214,597

Deferred Income Tax Liabilities

156,397

191,729

160,491

Other Long-Term Liabilities

75,844

71,675

75,136

Shareholders' Equity

1,047,050

981,501

1,003,137

Total Liabilities & Shareholders' Equity

$

2,632,830

$

2,853,454

$

2,606,217

JOHN WILEY & SONS, INC.

UNAUDITED CONDENSED STATEMENTS OF FREE CASH FLOW

(in thousands)

Six Months Ended

October 31,

2017

2016

Operating Activities:

Net income

$

69,284

19,549

Amortization of intangibles

23,802

24,826

Amortization of product development spending

20,246

18,701

Depreciation of technology, property and equipment

34,775

34,092

Non-cash charges and credits

56,225

113,852

Net change in operating assets and liabilities

(250,689

)

(297,114

)

Cash Used for Operating Activities

(46,357

)

(86,094

)

Investments in organic growth:

Additions to technology, property and equipment

(56,252

)

(52,728

)

Product development spending

(15,145

)

(16,604

)

Free Cash Flow less Product Development Spending

(117,754

)

(155,426

)

Other Investing and Financing Activities:

Acquisitions, net of cash

(6,097

)

(135,753

)

Net debt borrowings

196,589

278,985

Change in book overdrafts

(2,629

)

(5,861

)

Cash dividends

(36,699

)

(35,883

)

Purchase of treasury shares

(29,257

)

(21,289

)

Proceeds from exercise of stock options and other

7,347

15,890

Cash Provided by Investing and Financing Activities

129,254

96,089

Effects of Exchange Rate Changes on Cash

2,855

(37,059

)

Increase (Decrease) in Cash and Cash Equivalents for Period

$

14,355

(96,396

)

RECONCILIATION TO GAAP PRESENTATION

Investing Activities:

Product development spending

$

(15,145

)

(16,604

)

Additions to technology, property and equipment

(56,252

)

(52,728

)

Acquisitions, net of cash

(6,097

)

(135,753

)

Cash Used for Investing Activities

$

(77,494

)

(205,085

)

Financing Activities:

Cash Provided by Investing and Financing Activities

$

129,254

96,089

Excluding:

Acquisitions, net of cash

(6,097

)

(135,753

)

Cash Provided by Financing Activities

$

135,351

231,842

Free Cash Flow less Product Development
Spending:

The Company provides financial measures referred to as “Free Cash
Flow less Product Development Spending.” Free Cash Flow less Product
Development Spending is defined as “cash flow from operating
activities, less book composition and other product development and
capital spending.” Management believes this metric provides
additional information to investors to facilitate the comparison of
past and present results. This metric is also used internally by
management in evaluating results. This non-GAAP measure is not
intended to replace the financial results reported in accordance
with US Generally Accepted Accounting Principles.